rtcvb32: Probably the more annoying thing with the installers is that you can't modify them, so you can't remove garbage present in a game, or optimize images to be smaller.
Braggadar: True, but you can always keep a copy of the installers AND package up your altered files as a kind of overwrite patch to store with it (I'd even write a batch or make a self-extractor to automate the overwrite extraction). It's clunky and wasteful, but it's the best we can do, really.
But optimizing to save space that's sorta the opposite.
The best thing is to have games that are extract and run, then you don't need to install, you can even optimize using better compression. Yes batch files may be needed for conversion steps depending on the extra space you'll save.